Field of the Invention
The present invention generally relates to wireless beacons and more specifically to conducting transactions based on communications between a mobile user device and a wireless communication beacon.
Related Art
Merchants often use electronic systems in conjunction with a user device to conduct electronic transactions for goods and services. For example, some merchants have a magnetic strip reader as part of a point of sale (POS) system. A consumer to transfer funds to purchase goods or services may slide a credit card (user device) through the reader to provide account information for a payment institution. The POS system may, using the account information, communicate with a related financial institution to conduct a monetary transfer and complete the transaction.
Similarly, with the advent of near field communication (NFC) devices, other electronic devices can perform the functions of a credit card without a magnetic strip. For example, a smartphone with NFC capabilities may wirelessly communicate account information to a POS system through NFC communications rather than a magnetic strip.
However in the above examples, both systems involve the transfer of account information from the user device to the POS system for use by the POS system in conducting an electronic payment. By using a system that transfers sensitive information between the user device and merchant device, the system is vulnerable to having the account information intercepted during the transfer. For example, a second magnetic strip reader/NFC reader may intercept account information from the user device while the user device is being used. Additionally, in some cases, these POS system may store the user account information in a database which can be stolen if the database is not sufficiently secure. Reducing the number of times sensitive information is exchanged and the number of parties that receive the sensitive information would increase the security of the payment system. Thus a payment system which does not require the transfer of account information to the merchant or merchant device would be more secure and desirable. Furthermore, it would be desirable for a payment system to be more secure without compromising usability and convenience.
Additionally, in some cases, a user device may lack an NFC communications module and/or may limit applications that can use the NFC application. Thus a system that allows for user devices without NFC capabilities to conduct payments using wireless communications would also be desirable.
Embodiments of the present disclosure and their advantages are best understood by referring to the detailed description that follows. It should be appreciated that like reference numerals are used to identify like elements illustrated in one or more of the figures, wherein showings therein are for purposes of illustrating embodiments of the present disclosure and not for purposes of limiting the same.